Greenspan … Wrong On Regulation
"I made a mistake," Greenspan said, "in presuming that the self-interests of organizations, specifically banks and others, were such as that they were best capable of protecting their own shareholders and their equity in the firms."
"The Federal Reserve had as good an economic organization as exists," Greenspan said. "If all those extraordinarily capable people were unable to foresee the development of this critical problem . . . we have to ask ourselves: Why is that? And the answer is that we're not smart enough as people. We just cannot see events that far in advance."
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"We have to recognize that this is almost surely a once-in-a-century phenomenon," Greenspan said, "and in that regard, to realize the types of regulation that would prevent this from happening in the future are so onerous as to basically suppress the growth rate in the economy and . . . the standards of living of the American people."
Prior related posts:
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Greenspan … Housing Bottom In Sight
Greenspan … We Are In A Recession
30% chance the U.S. economy falls into recession in 2008
Fed Cuts .25% From Interest Rates To Help Housing Market
Former Fed Chief … Would Not Be Surprised If The Housind Drop Was “in double digits.”
Greenspan on The Housing Bust
Employment Report Negative Surprise . . . for Some
4 Sure Signs of A Real Estate Market Top
Greenspan – Possible Recession This Year!
Greenspan … We Are In A Recession
Former Federal Reserve chairman Alan Greenspan said yesterday that the U.S. economy is in recession and that it would be appropriate to tap public funds to resolve the mortgage-related crisis that has helped pull the economy under.
Also today, the International Monetary Fund concluded in a new forecast that underscored the damage inflicted from the housing and credit debacles. Economic growth in the United States is expected to slow to a crawl of just 0.5 percent this year, which would mark the worst pace in 17 years, when the country had suffered through a recession. The United States won't fare much better next year; the IMF projected the U.S. economy will grow by a feeble 0.6 percent in 2009, when measured by an annual average.